Virtual Loan apps in Kenya are required by Google to provide evidence of their operating permits in the nation, or they may risk being taken down from the Google Play store.
TechCrunch claims that Google’s action was required to safeguard borrowers from illegal practices of money lending apps, many of which charge borrowers exorbitant interest rates and violate regulatory restrictions.
“Developers with personal loan apps targeting Kenyan users must complete a declaration form and submit the necessary documentation before publishing their personal loan app. Personal loan apps operating in Kenya without proper declaration and license attribution will be removed from the Play Store,” Google said in a policy update.
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Following similar steps in India, Indonesia, and the Philippines, Kenya is now expecting new and existing loan applications to submit the necessary paperwork and information by the end of January 2019, according to the article.
Google made the announcement that it would need personal loan applications in India to satisfy the extra eligibility evidence requirements back in May.
The eligibility includes a copy of their license by the RBI, and a declaration that they are not directly engaged in money lending activities and are only providing a platform to facilitate money lending by registered Non-Banking Financial Companies or banks to users.
Meanwhile, in August, Google removed over 2,000 controversial personal loan apps from its Play Store after consulting with law enforcement.
(inputs from IANS)
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